All Forum Posts by: Alexander Szikla

@Daniel Steinmann - if you are going the FHA route, you will not cash flow during the 1st year when you are occupying a unit. However, you will not be paying rent - so there is some opportunity cost you must consider. However, once all units are rented, it is possible to cash flow. Difficult - but possible! I've done it for many clients in the past.

As others have mentioned though, it isn't only about cash flow. If you put down 3.5% and a property appreciates only 2% per annum - that is a +57% return on equity. You can't get that anywhere else. 

Now run the same assumptions for principal paydown and some tax benefits. Or even bring appreciation assumptions up to 3% per year. Think about this more holistically and consider absolute returns over a 10 year horizon as opposed to cash flow from day 1. 

Curious as well! 

AirDNA.co is an excellent resource

Good question - Taxes are high in Bergen County (Paramus is the exception due to the malls). Insurance premiums can be high due to high housing value, but vacancy is low due to quality of schools. 

Maintenance totally comes down to vintage of the property and how well ownership has managed prior to your purchase. 

With that being said, you can typically find cheaper labor (i.e. plumbers, electricians) outside of Bergen County (think Passaic Co.). 

MTR rental (over 30 days) is allowed across the board. Below 30 days is where there is a restriction.

Yes - you must live / be on-site for the STR property.

You need to owner occupy a 3 family property (or lower) in order to AirBnB legally (under 30 days) in NYC. So the best is to either focus on 3 fams (a great FHA product).

Or simply focus on Medium Term Rentals. 

Hi Ryan - Must be over 30 days. Or it must be a 3 family (or less) and you (owner) live on site. 

I find my tenants through Zillow, Facebook Marketplace and Apartments.com

I have them fit the following criteria:

1. Credit Check

2. Background Check

3. Income Verification

4. Employer Reference

5. Prior Landlord Reference

If you have below 10 units, I'd say you can self manage and not rely on a PM

I think you should double check with an attorney regarding condo conversions - in the past that has been a viable strategy in Union City. 

Perhaps you can also look into getting licensed as a "bed and breakfast" to allow sub 30 day rentals. 

Lastly, can you make substantial alterations to units in order to create new units and bring them up to market? 

Totally depends on the rate at which you are borrowing AND at what rate you can re-invest the money.